India’s studded gold jewellery exports have shown remarkable growth, more than doubling from $2.7 billion in FY 2020-21 to $6.1 billion in FY 2024-255. This robust expansion stands out against a backdrop of global economic headwinds and a broader decline in India’s overall gem and jewellery exports. The surge reflects shifting consumer preferences, strategic industry adaptation, and the competitive advantage of India’s integrated jewellery manufacturing ecosystem.

• Studded gold jewellery exports grew by 126% over five years, outpacing many other segments5.
• Plain gold jewellery exports also saw a significant 150% rise, indicating broad-based demand5.
• Despite an 11.7% decline in overall gem and jewellery exports in FY 2024-25, studded gold jewellery remained a growth driver35.

Drivers of Growth

1. Rising Gold Prices and Consumer Adaptation

• Skyrocketing gold prices have prompted consumers to shift towards jewellery with less gold content but enhanced visual appeal, such as pieces studded with natural or lab-grown diamonds (LGDs)5.
• Studded jewellery offers a cost-effective alternative, maintaining luxury appeal while managing material costs.

2. Local Manufacturing Ecosystem

• India’s ability to produce both natural and lab-grown diamonds domestically gives manufacturers a pricing edge and supply chain control5.
• The entire LGD process, from growth to setting, is handled in-house, ensuring quality and cost competitiveness.

3. Global Market Dynamics

• Exporters executed over $1 billion in shipments ahead of new US tariffs, showing agility in responding to international trade shifts3.
• While the US and China markets have been sluggish, demand for studded gold jewellery has remained resilient due to its adaptability and design innovation15.

4. Industry Innovation and Craftsmanship

• Indian manufacturers have leveraged design excellence and skilled craftsmanship to cater to evolving global tastes, enhancing the appeal of studded gold jewellery1.

Challenges

• Global Headwinds: The sector faces ongoing challenges from geopolitical tensions, trade sanctions, and competition from affordable lab-grown diamonds in other countries35.
• Decline in Other Segments: While studded gold jewellery exports are up, exports of silver jewellery and lab-grown diamonds have declined sharply, reflecting uneven performance across categories3.
• Tariff Uncertainties: New reciprocal tariffs in major markets like the US could affect future growth, requiring exporters to remain agile3.

Conclusion

India’s studded gold jewellery export boom is a testament to the sector’s ability to innovate and adapt in challenging times. By leveraging domestic strengths and responding quickly to global trends, Indian manufacturers have turned market challenges into growth opportunities, solidifying the country’s position as a global leader in the jewellery trade.